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WFTC and Minimum Wage Worksheet - Alleviating Child Poverty [Virtual Learning Arcade]

Alleviating Child Poverty: Combined Policy
Minimum Wage & Working Familes Tax Credit

The aim of the policy was to reduce the level of child poverty through increasing the national minimum wage rate and reducing the rate of withdrawal of the working families tax credit.

What will happen to the level of child poverty when there is an increase in the national minimum hourly wage rate and a reduction in the rate of withdrawal of the working families tax credit? (select one answer)

(a) * child poverty will increase over time
(b) * child poverty will decrease over time

Using the child poverty model, what are the consequences of increasing the national minimum wage rate to £5.00 per hour and reducing the rate of withdrawal of the WFTC to 52 pence per £1 on the level of child poverty ? Try This

(Type your answer to the previous question in the box below, then click on explain)


More information

For the most current information on the national minimum wage, visit the Inland Revenue Web site (http://www.inlandrevenue.gov.uk).

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Submitted by bized on Wed, 14/03/2001 - 13:00